Hi!
We are always thinking about ways to reduce taxes for clients. In this email, I am focusing on reducing stress having to do with deadlines. 😎
Today’s topic is extensions. Each year, 10 million Americans file an extension to get more time to file their returns rush-free. However, I have noticed that many other taxpayers are afraid of filing an extension.
Here I will go over the main concerns related to extending your returns:
Will I be penalized for filing an extension?
No. Filing an extension is a standard routine process, especially for late-season filers or those with a complex tax situation.
That said, if you know you will owe, we must post a conservative estimate of your tax due. This means that yes, you should overpay your tax at the time you extend. Failing to do so is the only way you will have penalties from an extension.
The extended deadline is then Oct 15th, but any clients on extension with our firm are all completely done well ahead of that.
Remember, since filing an extension does require a conservative estimate of taxes to be paid, we do require that we extend at least 2 weeks prior to any major deadline. This gives us enough time to roughly compute what you should post.
If I have overpaid, will I get a refund?
Absolutely. The IRS refunds overpayments using the same direct deposit process as any normal return.
What situations lead to an extension?
If it is so great, how come I have not extended before?
I have found that many clients are afraid of the extension process through not having done one before. We handle the entire process from end to end, so there is nothing to fear. It actually is highly advantageous to extend because it allows the return to be filed in the less busy period, which opens the door for detailed discussion & tax planning for future years to be completed directly within the context of the same session.
How does the extension process typically work?
I hope this was helpful and informational! If you have questions about this or need help with any accounting-related task, please contact me by replying to this email.
For last-minute extension requests, please let us know by 7 pm Thur evening at to check for possible open spots. We are past our internal deadline but will do our best, where possible.
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George Dimov CPA
www.dimovtax.com
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